Dar company begins exports to
Wal-Mart
By Business Correspondent
Star Apparels (T) Ltd. has started making sales to Wal-Mart, world’s largest
retailer, only days after the United States Congress voted overwhelmingly to
extend the Africa Growth and Opportunity Act (AGOA).
The success of this landmark trade legislation was highlighted when Star
Apparels inaugurated a new garment factory in Dar es Salaam early last month to
help meet garment orders from several major United States retail outlets.
According to the US Embassy in Dar, the new factory brought renewed attention to
increased Tanzanian exports under the legislation.
The factory’s first order from Wal-Mart was for 228,000 pieces of apparel worth
over US $300,000 (Tsh. 300 million) with additional orders pending by J.C.
Penney Co. Inc. and other US companies.
To date, the United States has been the only target market, although the company
anticipates selling up to 20 percent of its goods within local market -
Tanzania.
The inauguration came only a few days after the US Congress passed the AGOA
Acceleration Act, extending the customs and tariff preferences of AGOA outward
to 2015, as well as extending for three years the third-country fabric
provision, which is to expire in September 2004. President Bush signed the Bill
into law July 13.
Star Apparel (T) Ltd. is owned by Apparel Tri-Star Uganda, a subsidiary of a Sri
Lankan company, Tri-Star Group. According to the US Embassy, when Tanzanian
President Mkapa visited the Tri-Star factory in Uganda in 2001, he noted that
this was the kind of investment Tanzania needed, and personally invited the
management to invest in Tanzania.
In 2003, the company was granted an Export Processing Zone (EPZ) license and was
incorporated in Tanzania.
After investing nearly US$ two million (Tsh. two billion) in machinery and
training, production began in December 2003. The factory now has 600 machines
operated by 650 workers, who can produce up to 6,000 garments per day.
By the end of 2004, the factory expects to have hired over 1,000 employees with
a potential to produce US$ four million (Tsh. four billion) worth of apparel per
year.
Accountants must follow IFRS
standards: Sila
By Business Reporter
Accountants and auditors in Tanzania have been asked to ensure that all
financial records and reports are prepared and presented well using the
International Financial Reporting Standards (IFRS) and International Accounting
Standards Board (IASB).
Speaking at a workshop at Karimjee Hall Tuesday, chairperson of Tanzania
Association of Accountants Mercy Sila, said every accountant should be concerned
and ask himself or herself to what extent he or she is skillfully prepared with
IFRS in every day operations.
She said the National Board of Accountants and Auditors (NBAA) was formed under
the Auditors and Accountants Act No.33 of 1972 and as amended by Act No.2, has
among its responsibilities formulation of accounting standards in the country.
“We accountants know the importance of accounting standards in our day to day
accounting function, where by asset valuation and income determination increase
every day.”
Sila said Tanzania will shift from the use of accounting and auditing standards
issued by NBAA to IFRS.
Shainul Bhanji of Global Investor s Consultation Center (GICC) said, “We are all
aware that remarkable globalisation has taken place in the world economy and
every country whether big or small is being affected by the process.”
She said a large number of foreign investors visiting Tanzania are increasingly
showing interest in cross-border investment opportunities and indeed technology
is making borders disappear.
Celtel approves TCRA mediation
By Business Reporter
Celtel Tanzania Ltd. has said Tanzania’s fastest growing cellular operator fully
supports the determination notified by the Tanzanian Communication Regulatory
Authority (TCRA) on August 1 this year.
According to a press release Tuesday this week, the determination is a result of
a professional, independent study “in which we believe all operators were fully
involved”.
The statement said it was clearly explained and announced to all operators that
no further delays were to be experienced with the implementation, during a
briefing session at the Royal Palm in the beginning of this month.
The interconnectivity rates arrived at are based on compensating costs incurred
by an operator for building and maintaining the network and the operating costs
of any efficient telecommunication network.
PRS on right track
By Angela Mazula
The Poverty Reduction Strategy (PRS) is reaching its target, whereby the number
of people living below poverty line has started to decline day by day; about 16
per cent of population lived below the food poverty line last year, down from 20
per cent in 2002.
According to the Poverty and Human Development Report of 03/04, the number has
started to go down. There is progress in other areas as well, such as child
labour and food inflation in the urban areas.
The report said growth in agriculture is essential if rural incomes are to
increase, although mining and tourism have grown compared to past three years
ago.
“Mining and tourism have grown faster than agriculture; since 1997, agriculture
has declined from 50 to 47.5 per cent in 2002 and other sectors still have
relatively small shares of overall growth development,” the report noted.
Ibrahim Ugulumu, a PRS consultant, said that mining grew rapidly in response to
government policies.
He said Foreign Direct Investment (FDI) had increased to Tsh 2.2 trillion. A
large share of the FDI went to the mining sector - about 40 per cent - 22
percent to manufacturing and 13 per cent tourism, according to an economic
survey done in 2002 by the Bank of Tanzania.
Over 75 per cent of FDI goes to Dar es Salaam, Arusha, Shinyanga, and Mwanza
regions that are much ahead of areas with less developed economic infrastructure
and social services.
Govt mulling over ban on scrap
metal export
By Business Correspondent
The Ministry of Industries and Trade is carrying out a two-month study, starting
early last month, to establish the impact of scrap metal business on the
country’s economy.
The study seeks to establish if there is a need to ban scrap metal exports and
to find ways of controlling the business to avoid destroying economic
infrastructure.
The Director of Industries at Ministry of Industries and Trade, A.A Nyiti said
last week, the government has temporarily banned export of aluminium, brass,
iron and steel until the study is completed at the end of this month.
The Tanzania Railways Corporation (TRC) has been prey to the vandalism; between
January and June this year, TRC incurred a loss of Tsh. 165.73 million due to
theft of brake bloc keys, control rods, door caps/weather plates, hooks,
hosepipe head couplings and pull rods.
The loss is attributed to the theft by vandals who sell the railway parts as
scrap metal to dealers. Vandals are said to be uprooting the pieces along the
entire 2,600 km railway line.
Dealers in scrap metals offer Tsh. 105,000 per tonne for metal with a little
rust, with a minimum load of 10 tonnes. Consignments of less than 10 tonnes
fetch less.
TRC also suffers losses from vandalism of telephone wires totalling 149 km worth
Tsh. 29.9 million annually.
Due to high demand of scrap metals, especially iron, steel and aluminium, the
Tanzania Electricity Supply Company (TANESCO), properties are looted by vandals,
who strip power transmission wires to collect copper and aluminium wires for the
scrap metal industry.
Tanzania has seven steel rolling mills producing brass, aluminium, and iron
steel. The export of raw metals is said to negatively affect local industries,
apart from vandalism of economic infrastructure.
A major vandalism blow to TRC infrastructure was dealt recently, when vandals
uprooted a 2.5 km siding on the Dodoma-Kizota railway stretch. It caused TRC a
loss of Tsh. 90.83 million.
The railway line now lies in a shambles as rails and slippers have been
disconnected after vandals took away bolts, nuts, fish plates, shoulders, clips
and bearing plates. It is now impassable.
KQ spreads wings to Dar bourse
By Business Correspondent
The Kenya Airways (KQ) cross listing is likely to happen late this month after
the company’s officials submitted application to the Dar es Salaam Stock
Exchange (DSE) in June this year.
Sources in the DSE and Capital Market and Securities Authority (CMSA) could not
give details as the concerned parties are still working on the KQ prospectus.
“Everything should be made public after the finalisation of KQ prospectus,” the
source said.
A fortnight ago DSE CEO Jonathan Njau was quoted saying the exact date of KQ
cross-listing at Dar bourse would be announced after a meeting with CMSA and
Orbit Securities Ltd - the sponsoring broker.
The DSE listing procedure takes two weeks after finalisation of documents, Njau
said.
Orbit Securities Ltd. did not want to comment on the listing as matters are
still in an initial stage. The company is the sponsoring broker and investment
advisor of KQ cross-listing at Dar bourse.
KQ will be the first foreign equity company and the first airline to be listed
at the Dar es Salaam bourse. Given its performance in air and on books its share
prices are expected to skyrocket on the first trading day.
Since the first news of the KQ cross listing to Tanzania, its shares price
almost doubled from Ksh. 6 (Tsh.78) of last year to Ksh.13 (Tsh. 169) this year.
Tanga Port to boost handling
capacity
By Abduel Kenge
Tanga Port, the second biggest in Tanzania, projects an increase in its handling
capacity to 87.7 per cent by the end of this year.
The port, which has handling capacity of 500,000 tonnes per annum, presently
utilises 76.5 per cent and targets to collect revenue amounting to Tsh. 358
million in 2003/04. It has so far managed to generate Tsh. 317 million in the
first six months.
According to statistics made available by the Tanzania Harbour Authority, Tanga
port capacity utilisation began rising since 1996 when it handled 29.6 per cent
cargo and rose gradually in 2000 to 39.7 per cent before achieving 57.6 percent
in 2001. The port has lately recorded 76.5 percent.
Based on a report, a large volume of goods handled at the port are exports
fuelled partly by privatisation process, which has improved Tanga region’s
economy growth.
Annual traffic totals 194,000 tonnes, including 66,000 tonnes of imports and
129,000 tonnes of exports. This includes 6,500 Twenty-foot Equivalent Units
(TEUs) in container traffic, bulk, liquid bulk and break bulk cargo.
Principle imports via Tanga Port are chemicals, machinery, petroleum products,
vehicles, consumer goods and food grains; and exports are coffee, seed beans,
sisal fibre, sisal twines forest products
Also cargo trafficking growth at the port follows the 1997 rehabilitation which
increased the number of ship calling at Tanga. Regular callers at the port
include P&O Nedlloyd, MAERSK line, Global Container Line, MITSUI OSK Line, Sea
Trade and Inch Cape.
Company to boost demand for
laptops
By George Mshana
PRINCE (T) Ltd is selling laptop computers at affordable prices to enable
low-income earners to own computers and also to promote the ICT sector in the
country.
Mudathir Pereira, the general manager of the firm, said in an interview that
universities in the country should convince their students to use laptop so as
to simplify their activities when they study. If every student can have a
laptop, he/she can access various material concerning their course and be able
to better understand their subject.
The firm will supply laptop computers to the whole country at following prices:
Compaq centrino laptop at US$ 1,425, 512 mb Ram, 40 Gb HDD, CD-RW & DVD-Rom 15.4
Tft Display. Toshiba US$ 1,490, 20 pentium 42.66, 256mb Ram, 40 ab HDD,CD-RW &
DVD-ROM 15 inch Tft Display.
Others are Dell Optiplex US$ 1080 Pentium 4.26, 256 mb Ram 80ab HDD comb. Drive
,Nic 10/100, 17 inch Dell. Monitor and Dv writer US$ 130.
Pereira also urged Members of Parliament to use laptop computers so as
to simplify their contribution in the Parliament. It would help them to collect
data from their electorates and present it in Parliament, he said.
ACB net profit
triples
By Business Correspondent
Akiba Commercial Bank (ACB) Ltd has managed to almost triple its net profits in
this year’s second quarter compared to the last one.
The ACB posted a net profit of Tsh. 342 million in the quarter ended June this
year compared to Tsh.115 million posted at end-March same year.
According to a statement issued Tuesday this week, the bank’s good performance
is credited to net interest income portfolio, which generated Tsh. 700 million
during the quarter under review. In the previous quarter the bank realised
Tsh.653 million.
ACB posted Tsh. 283 million in non-interest income at the end of the second
quarter compared to Tsh. 150 million in March end this year.
The bank with four branches in Dar es Salaam is among the top five medium-sized
banks in the country.
ACB’s total amount loaned out up to the end of June this year was Tsh.11.68
billion, while customers’ deposits reached Tsh.14.56 billion.
Although non-performing loans and advances increased slightly by five per cent
from three per cent, the bank has a sound repayment ratio of more than 97 per
cent.
Tanzania recieves US$150
million for PRS
By Business Correspondent
The World Bank Board of Executive Directors approved last week a credit and
grant of a total value of US$150 million (Tsh. 150 billion) in support of
efforts by Tanzania to implement its second poverty reduction strategy in 2004.
According to a WB release, the credit and grand come under International
Development Association (IDA) where the value of the credit is US$60 million
(Tsh. 60 billion) and the IDA grant value is US$90 million (Tsh. 90 billion).
The Second Poverty Reduction Support Credit (PRSC-2) will finance the
implementation of the government’s comprehensive macroeconomic and social policy
reforms as spelt out in Tanzania’s Poverty Reduction Strategy.
It focuses on four key development areas: sustaining and accelerating growth and
broadening its impact; supporting results orientation of public service
delivery; enhancing public sector performance; and strengthening environmental
management.
The budget support provided through the credit and grant will help the
government close the fiscal gap between the cost of implementing key elements of
Tanzania’s poverty reduction strategy and resources available from the
government’s own domestic revenue and other donor support.
The PRSC-2 is also a testament to Tanzania’s success in donor harmonization
around Government’s poverty reduction strategy. The Bank together with a group
of twelve other donors provides coordinated budget support to Tanzania, using a
common performance assessment framework grounded in the countries poverty
reduction strategy and a joint, semi-annual review process.
The WB Task Team Leader for the project Robert Johann Utz acknowledged that “the
targets set in Tanzania’s PRSC-2 to support reforms aimed at accelerating
economic growth and broadening its impact, improve public service delivery,
enhance transparency and accountability of public spending, and promote
environmental sustainability. PRSC-2 will assist Tanzania to achieve the
Millennium Development Goals. “
With per capita income of about US$280 per year, Tanzania’s 34.5 million
inhabitants are among the poorest in the world. The country’s economy is heavily
dependent on agriculture, which accounts for about 50 percent of GDP, provides
85 percent of exports, and is by far the largest employer.
Although the country experienced worsening poverty in the early 1990s, the
benefits of more recent growth have contributed to reverse the trend. During the
past decade, food poverty has declined from 21.6 percent to 18.7 percent, while
basic needs poverty has fallen to 35.7 percent from 38.6 percent a decade
earlier.
The credit is on standard IDA terms, with a commitment fee of 0.35 percent and a
service charge of 0.75 percent. The credit’s period of maturity is 40 years,
including a 10-year period of grace.
Bank extends its business to
Tanzania
By Business Correspondent
I &M Bank, based in Kenya, is set to expand its operations to Tanzania.
The Bank’s spokesman, Mehboob Champi, says in a statement that the Tanzanian
operation should be up by the end of the year.
If the bank granted a license it will become the 29th financial Bank in
Tanzania. The Bank of Baroda, which was licensed in November last year, is
expected to open its doors to customers by mid-next month.
I&M (Investment & Mortgages Bank) was originally incorporated in 1974, and
licenced as a financial institution in 1980.
With increasing volumes and customer demand, the directors decided to convert
the finance company into a bank in 1996.
Its conversion to a bank was a turning point in expanding from a one-branch
operation into three branches, all located in Nairobi.
In order to grow, the bank merged with Biashara Bank of Kenya through an
acquisition of assets and liabilities.
This transaction was concluded on December 31, 2002. Apart from a quantum jump
in the size of its balance sheet, the branch network increased to seven, with
added presence in Mombasa, Kisumu and Industrial Area in Nairobi.
Biashara was a retail bank with a wide spread of savings accounts, whereas I&M
had concentrated more on corporate customers, as its main strength was trade
finance, hire purchase and loans.
The merger of the two banks’ operations expanded the group’s product range, and
a wider customer base has resulted in reduced costs.
I&M’s customer base is broad and diverse, covering retail, manufacturing,
trading, exporters, hotels, horticulture and service sectors.
The bank also offers custodial services and is gradually expanding to retail
lending. I&M was the first commercial bank to introduce a home loan product in
the Kenyan market in 2003.
TBA introduces CIB
By Business Correspondent
Borrowers could start paying less bank interest rates on loans thanks the
introduction of a credit information bureau (CIB) by Tanzania Bankers
Association (TBA).
CIB sets to boost the banks’ confidence that lending would henceforth be less
risky business.
The Chairman of Tanzania Bankers Association (TBA), Mayank Malik said recently,
“We [bankers] hope this will lower the cost of credit, eventually translating
into lower rates and reduced borrowing cost.”
The lending rates deny potential borrowers particularly the small and medium
entrepreneurs the opportunity to access credit.
Malik, who is also the Chief Executive Officer of Citibank (T) Ltd, said the
bureau will definitely affect provision of credit to good customers as well as
wipe out the negative attitude towards credit in Tanzania “to the extent that
good customers have been subsidizing the bad few ones.”
Since the liberalisation of the financial sector began in 1991, lending has been
strenuously resisted by these institutions fearing massive defaulting by
borrowers.
“We have gone to great lengths to ensure the security and maintenance of the
privacy of our customers. The information is secured by the best security
technology in business,” Malik said.
Bank customers will be ranked from good, very good, excellent and so forth to
reduce the cost of lending.
“With the Bureau in place the size of banks’ assets will go up, so will the
banks’ contribution to the Gross Domestic Products, which expected to double
from 10 per cent,” Malik predicted.
Currently the banks’ lending interest rates are high, ranging between 15 and 25
per cent, which compares badly with deposit interest rates that range between
2.5 per cent and 4 per cent.
The CIB, made up of 28 members drawn from banks and financial institutions, will
run the autonomous CIB data processing system that will be available to all
members.
The CIB is expected to open more lending doors to micro, small and medium size
enterprises. Legal amendments have been made to the Banking and Financial
Institutions Act, 1991, and the Bank of Tanzania Act, 1995, to accommodate
credit reference system.
Diamond Trust improves
performance
By Business Correspondent
The Diamond Trust Bank (T) Ltd. has posted a pre-tax profit increase of 17.23
per cent in the second quarter of this year.
According to a statement issued last week, the bank attributed of its good
performance to the net interest income portfolio, generating Tsh. 464 million
during the quarter under review.
The bank posted Tsh. 316 million as non-interest income at the end of the second
quarter compared to Tsh.263 million in March end this year.
The total loan amount up to the end of June this year amounted to Tsh.19.24
billion while customers’ deposits touched Tsh. 29.6 billion.
Elephants destroy rice farms
By Ramadhan Libenanga, Morogoro
Over 50 hectares of rice farms in Dakawa in Mvomero District, Morogoro region,
have been destroyed by roaming elephants, causing a great loss to farmers owning
the farms.
The Eastern Zone Farmers Association Secretary Onesmo Ishumi revealed this to
reporters during an interview at the preparation sitting for Farmers 8-8
Exhibition 2004, opened on August 1 at the Mwalimu Julius Nyerere Grounds, on
the outskirts of Morogoro Municipality.
The elephants numbering around ten are said to have caused severe damage, he
said, adding, already the Farmers Association Officer has urged game officers to
help tackle the problem.
The farms being near the Wami Mbiki Wildlife Project, it has become normal for
the wild elephants to trample over them.
If not checked in time, the elephants could cause great losses to farmers and
even create famine condition in the areas concerned.
Dikupatile Edwin, one of the victims of the elephant menace, said when he went
to visit his farm he found it completely destroyed.
“After being informed that my farm was badly destroyed by elephants, I went to
make a spot check. I was shocked to see my farm completely ransacked, Edwin
mourned.
Isles govt forms tourists
safety commitee
By Fakih Yussuf Mohammed
In order to ensure that tourism in 2004/2005 financial year succeeds, the
Ministry of Trade, Industries, Marketing and Tourism in Zanzibar, has formed a
special committee which will oversee the safety of tourists visiting the Isles.
Speaking to The Express in his office, early this week, the chairman of the
Special Overseeing Committee, who also is the chairman of Zanzibar Tourist
Commission, Issa Ahmed Othman, said the special committee has been formed by
members of the Police Force, Immigration Department, Commission of Tourism, ZIPA
and the Ministry of Trade.
The committee has been given two weeks to complete the report of its strategies
concerning the strengthening of tourists’ safety, including providing
recommendations which will assist the special committee in its function.
The recommendations, which will be presented to the government, will continue to
be used in other future seasons, to ensure that the safety of tourists is
consolidated, thus increasing the number of tourists and raising the national
revenue.
The chairman said, there is a need for tourism stakeholders to cooperate with
state organs in order to see that there is enough safety for tourists who visit
Zanzibar.
He also called on tourists guides to induce tourists to visit areas of
attraction which are safe and avoid areas that are thought to be homes of
bandits who can endanger the lives of tourists and rob them.
Speaking on the banditry act that occurred last month in Tandana village in
Pemba Island, Othman said, he was saddened by the event, where three tourists
were injured and robbed of their valuable properties, despite the tourist sector
growing in Zanzibar.
There have been a number of banditry acts that have undermined government
efforts to check Zanzibar’s economic decline.
Presenting his budget estimates for the fiscal year 2004/2005, Minister for
Trade, Industries, Marketing and Tourism Mohammed Aboud Mohammed, said figures
of 2003 indicate that Zanzibar received 68,365 tourists; 18,900 less than the
2002 figure.
The entry of tourists began to decline in January 2004 after announcement of
terrorists invading Zanzibar, specifically reported by the Western Media,
including CNN and BBC.
Terrorist strikes in Mombasa (Kenya), the Iraq War and catastrophes in Zanzibar
itself, have contributed to the downfall of Zanzibar tourism sector.
104 left jobless in Dodoma
health dept
By Emmanuel Lazaro, Dodoma
The Dodoma Municipal Council has retrenched 104 workers of the health department
of the Health Prevention Unit.
Opening the ordinary councillors session, Thursday last week, the Municipal
mayor Godwin Chetti said the workers were retrenched between January and June
this year.
Retrenchment of the workers is one of the steps being undertaken to implement
the Local Government Reform Programme; (LGRP) and some of the workers have been
paid their final benefits while other payments are still being worked on.
Meanwhile, the Dodoma Municipal Council in the last six months has distributed
189 mosquito nets to various villages, aimed at controlling the spread of
malaria in rural areas.
The Council has also directed that each house hold should have a modern toilet
and ensure that water services are provided to the villagers.
Speaking on the Council’s Income and Expenditure, Cheti said, in the last six
months, the Council had been able to collect more than Tsh. 272.4 million, which
is equivalent to 69% of the estimated revenue.
DUWASA water extremely cheap
now
By Heri Said Kilongo, Dodoma
The Dodoma Urban Water Sanitation and Sewerage Authority (DUWASA) has rectified
its monthly water rates that became officially effective on July 1, 2004.
According to DUWASA Executive Director, Engineer Peter Mokiwa, the new rates aim
at ensuring that every resident of Dodoma Municipality is able to pay for this
basic need.
Speaking to The Express reporter recently in Dodoma, Mokiwa said the new rates
also aim at increasing the number of clean water users for DUWASA.
He added that the lowering of water rates, especially for home users, had been
made possible by the achievements of DUWASA and also because of the cooperation
received from the customers.
Effective July 1, customers will pay Tsh. 3,500 for cubic metres 1-10, while
business people, institutions and industries will pay Tsh. 12,000 for the same
amount per month.
Concerning new connection charges, Mokiwa said the customers who need the
services will have to pay between Tsh. 20,000 and Tsh. 40,000 while reconnection
fee will be between Tsh. 5,000 and Tsh. 20,000.
Formerly, Dodoma Municipality residents used to pay Tsh. 5,500 as minimum water
charges. So the new rates are likely to attract more customers to DUWASA.
Dodoma town is now considered to have the best water services in the country,
claimed Mokiwa.
EOTF Chairlady urges use of
solar energy
By Rutani Cylidion, Bukoba
The Chairlady for Equal Opportunities for all Trust Fund (EOTF), Mama Anna
Mkapa, has urged the use of solar energy as an alternative source of energy,
instead of degrading the environment by using firewood.
Mama Anna Mkapa made this call last Sunday at Katare Village when inaugurating
solar energy at Katare Health Centre in Bukoba Rural District.
The solar energy project was funded by a non-governmental organisation (NGO)
called the Solar Light for the Communities of Africa Agency (SOLCAT). It cost
Tsh. 1.2 million.
She said using solar energy, the Health Centre would enable it to provide better
services at night than before. The solar energy, she reiterated, would help
Katare Health Centre to use refrigerators to preserve medicines, which without
electricity could not be ordered.
Presently she said, production in the agricultural sector has declined, due to
proliferating soil erosion which is caused by rampant tree felling. The
community should use solar energy so as to preserve the environment.
Mama Anna Mkapa thanked SOLCAT, which offered to fund solar energy at the rural
health centre. The electricity provided by the National Grid does not suffice
the needs of people living in rural and urban areas.
Among the people who attended the inauguration ceremony were, Kagera Regional
Commissioner, Tumaini Kiwelu; Acting USA Ambassador in Tanzania, Christopher
Steelman; Bukoba Diocese Bishop, Nestory Timanywa; SOLCAT Representative, Alden
Hathway; SOLCAT Executive Director, Francis Mtagwaba, together with various
leaders of government and religious groups.
Farmers asked to revive
coffee production
By Heckton Chuwa, Moshi
COFFEE farmers in Kilimanjaro have been asked to take quick steps to improve the
quality of the crop, which is on the verge of collapsing as a result of low
production every year.
The General Manger of the Kilimanjaro Native Cooperative Union ( KNCU), Raymond
Kimaro, sounded his concern at the KNCU’s 22nd annual general meeting held here
Friday.
Kimaro said the Society’s target was to collect more than 2.5 million kg of
coffee from the primary societies in 2003/2004, but could only collect 1.7
million kg, which is equal to 71.89 percent of the intended target.
He said the main reason behind the low collection was the production of low
quality coffee by farmers. The collection, he added, went down to 3,399 tonnes
in 2003/2004 from 9,060 tonnes in 2000/2001.
“Apart from that 15 primary societies in Hai and Moshi Rural made some
improvements and they were able to produce coffee of high quality that was able
to fetch good prices in the world market,” he observed, adding said primary
societies produced a total of 468,796 kg of quality coffee, equal to 18.75% of
all the coffee produced last season.
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